Is anybody out there trading credit spreads from a retirement account? I can't seem to get a clear answer on whether the IRS allows this or not.
IMO, the IRS will always be playing catch-up when it comes to their stance on options strategies. The bright/imaginative minds of traders have to develope the strategies first, then the IRS gets to argue about how to tax them.
The IRS has no problem with you trading credit spreads in your IRA account. There is a problem at some brokerage account but not at all of them. I trade at TOS with no problem. George
What is SET, as discussed in the previous posts. Could anyone please expalin? I am still a newbie and trying to understand this term. Thanks.
Donna, it is the indicator created by Max Ansbacher, a veteran options fund manager. Send me your email via PM and I'll send you an interview article of Ansbacher.
I am and have been since we have transfered to TOS which does let us do any defined risk trade in the IRA...it depends more on the broker than the IRS which could care less....
The March SPX options stopped trading today (Thursday) at 4:15. The actual settlement price is based on the SET which is determined on the opening prices of the S&P 500 stocks on Friday. It can be a bit confusing so I would suggust you read the info from CBOE for more detailed information: http://www.cboe.com/Products/indexopts/spx_spec.aspx ryan
I'm trading credtit spreads in my IRA - my accountant says they're ok. I don't have anything from the IRS to comfirm if it's allowed or not